Founder/CEO of Cliezen, a B2B Client Engagement & Experience platform. Kári Thor has a MSc in Advanced Marketing & 3 previous startup exits.
The net promoter score (NPS) has been heralded as the gold standard for measuring customer loyalty and satisfaction in the last couple of decades. Introduced publicly in a 2003 Harvard Business Review article, the concept of NPS has a deeper history, with roots stretching back to the 1990s.
Initially designed for B2C environments, NPS offered a simple, direct way to gauge customer loyalty and allowed companies to understand their customers in a seemingly quantifiable manner.
But as companies in the B2B space have adopted NPS, the metric’s limitations have become increasingly clear. For complex and dynamic B2B business relationships, NPS may, at best, provide a surface-level view.
In this article, we’ll explore why NPS is often misaligned with B2B needs, why it’s losing ground and why B2B organizations need to look beyond NPS for a deeper understanding of customer satisfaction.
The Rise Of NPS In B2C
NPS became a beloved tool in B2C customer experience (CX) strategies due to its simplicity. By asking customers a single question: “How likely are you to recommend our company to a friend or colleague?” and then subtracting the percentage of detractors from promoters, NPS quickly offered a quick and simple snapshot of customer loyalty (or so the creators of NPS say). The result could be tracked over time, providing companies with an easy metric to assess progress.
For many B2C companies, this approach made sense. For retail, hospitality and other consumer-focused industries, a customer’s likelihood to recommend a brand can be a predictor of repeat business and brand loyalty and is typically based on only a couple of experience variables.
Why NPS Caught On
NPS’s appeal lies in its simplicity and the direct insights it provides. It offered executives a digestible number, leading to widespread adoption. The premise (and promise) was that NPS correlated with customer loyalty and revenue growth, reinforcing the metric’s status. Companies like Apple, Netflix and Southwest Airlines famously championed NPS, adding to its allure.
But the simplicity that makes NPS attractive for B2C customer insights becomes a limitation in the nuanced world of B2B.
The Shortcomings Of NPS In B2B
The fundamental issue with applying NPS in a B2B context is that its simplistic nature overlooks the complexity of B2B relationships.
1. Diverse stakeholder needs: B2B client organizations have multiple roles with unique priorities, which NPS and similar metrics fail to capture. A single score often oversimplifies or misrepresents satisfaction, making it hard for companies to address specific stakeholder needs effectively.
2. Low response rates and survey fatigue: B2B clients often skip NPS surveys due to feeling their input is ignored. Without closing the feedback loop, companies struggle to show respondents their feedback matters. When companies follow up effectively, I’ve seen response rates reach 40% to 60%, especially with tools that respect customers’ time.
3. Lack of actionable insights: NPS scores don’t reveal the specifics behind dissatisfaction. B2B relationships are complex, with issues potentially tied to product, service or support. Without detailed feedback, companies miss opportunities for targeted improvements.
The Decline Of NPS For B2B Companies
As B2B companies attempt to adapt NPS to their needs, the metric’s limitations become apparent. Many B2B organizations are beginning to seek alternatives that offer a more comprehensive understanding of customer relationships. For instance, some companies are turning to methodologies that combine aspects of customer satisfaction and relationship quality to develop a nuanced view of their customers’ experiences.
To gain true insight into B2B customer satisfaction, companies need to go beyond NPS and focus on measuring customer needs, expectations, and experiences. Metrics that incorporate relational factors, performance feedback and customer success insights can provide a richer, more actionable view of customer health.
Moving Beyond NPS: A New Approach For B2B
Rather than relying on a single, oversimplified metric, B2B organizations should consider a multi-dimensional approach to customer satisfaction, ensuring all feedback leads to meaningful action. This involves understanding client goals, measuring satisfaction across various touchpoints and evaluating how well the company meets those expectations.
A comprehensive feedback system enables B2B companies to identify issues early and act on them to improve the customer experience, ultimately boosting client satisfaction and loyalty.
An alternative to NPS should encompass the following elements, all designed to turn feedback into concrete actions that enhance the customer relationship:
• Multi-stakeholder feedback: Gather feedback from different stakeholders within the customer’s organization to capture various perspectives. This allows the company to address diverse needs and expectations effectively, ensuring that solutions are tailored to specific roles and objectives.
• Touchpoint analysis: Evaluate satisfaction at each key interaction point along the customer journey. By understanding where the experience excels or falters, companies can target improvements where they’re needed most, fostering a smoother, more satisfying client experience.
• Performance metrics: Include metrics related to product performance, service quality and value delivery. These provide context to satisfaction scores and enable companies to take actionable steps to refine their offerings based on detailed feedback.
• Relationship health: Continuously assess the quality of the ongoing partnership, considering both current experience and future expectations. This focus allows you to proactively strengthen the relationship by addressing potential issues before they impact loyalty.
To truly understand B2B relationships, I believe companies must look beyond simple scores and focus on deep, actionable insights. It’s not just about recommendations; it’s about knowing client needs, addressing them effectively and committing to improvement. Those who listen and act meaningfully will ultimately build stronger, more loyal partnerships.
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